How to Buy Gold in Singapore and Add it to Your Investment Portfolio

Gold: the ultimate safe-haven asset? It's been a store of value for centuries, and many investors turn to it during times of economic uncertainty. But how exactly can you invest in gold in Singapore? Let's explore the options.

Gold tends to be labelled a 'safe haven' asset because it tends to hold its value during times of inflation and economic turmoil. Unlike currencies, which can be printed endlessly, gold has a limited supply, making it a good hedge against inflation. There are various ways to invest in gold, from owning physical gold bars to investing in gold-related financial instruments like stocks and funds.

There are two main ways to invest in gold: physical gold and "paper" gold. Physical gold refers to owning gold bars, coins, or jewelry. Paper gold refers to owning gold-related investments, such as stocks, exchange-traded funds (ETFs), and mutual funds.

Before diving in, consider these factors:

• Liquidity: How easily can you buy and sell your gold investment?

• Fees: What are the costs associated with buying, storing, and selling gold?

• Storage: Where will you securely store your physical gold?

• Risk: What are the risks associated with each investment type?

Imagine holding a gleaming gold bar in your hands, the weight of its value a reassuring presence. That's the allure of gold bullion — owning actual gold in its purest form, typically as bars or coins. It's the classic image of gold investment, conjuring up thoughts of treasure chests and ancient empires.

Pros:

• Can be used to hedge against inflation.

• No counterparty risk (you own the physical gold).

Cons:

• Requires secure storage (e.g., safety deposit boxes).

• Lower liquidity compared to paper gold.

Where to buy in Singapore?

• Banks: UOB Gold Bullion.

• Bullion dealers: BullionStar, GoldSilver Central.

Gold jewellery isn't just a fashion statement; it can also be a form of investment. Think of it as a way to wear your wealth, enjoying the beauty of gold while potentially benefiting from its value appreciation.

Pros:

• Dual purpose (wearable and investment potential).

• Accessible through many jewelry stores.

Cons:

• High markups due to design and craftsmanship, which may erode investment returns.

Where to buy in Singapore?

• Major jewellers: Poh Heng, SK Jewellery.

Jump to our segment on physical gold to learn more.

Instead of owning the metal itself, you can invest in the companies that mine and produce it. Gold stocks represent shares of ownership in these companies, allowing you to benefit from their business revenue. It's a way to tap into the precious metals market without the hassle of buying, storing, and securing physical gold.

Pros:

• Potentially higher returns compared to physical gold if the company performs well.

Cons:

• Stock performance depends on company management and overall market conditions.

• Higher risk compared to physical gold.

Popular gold stocks:

• Barrick Gold (GOLD)

• Newmont Corporation (NEM)

• Singapore-listed gold-related firms (if applicable).

How to invest in gold bullion in Singapore?

• Banks: UOB Gold Bullion.

• Open a brokerage account with DBS Vickers, Saxo Markets, FSMOne.

>> Read more: Best brokerage accounts

Gold ETFs allow you to ‘hold’ in gold with the convenience of not actually owning the physical metal. These funds hold a basket of gold-related assets, such as gold mining companies or gold bullion, allowing you to diversify your investment and gain exposure to the gold market. They're traded on stock exchanges, just like individual stocks, making them easy to buy and sell.

Pros:

• More liquidity than physical gold.

• Diversification across multiple gold-related assets.

• Certain legal protections.

Cons:

• May have management fees.

Popular gold stocks:

• Barrick Gold (GOLD)

• Newmont Corporation (NEM)

• Singapore-listed gold-related firms (if applicable).

How to invest in gold stocks in Singapore?

• Open a brokerage account with DBS Vickers, Saxo Markets, FSMOne.

>> Read more: Best ETFs in Singapore

A gold futures contract is an agreement to buy or sell a specific quantity of gold at a predetermined price on a future date. These contracts are traded on exchanges, and their value fluctuates based on the expected future price of gold.

Pros:

• High leverage potential (control a large amount of gold with a small investment).

• Short-term trading opportunities.

Cons:

• High risk, potential for significant losses.

• Requires active market knowledge and experience.

Where to trade gold futures in Singapore?

• Singapore Exchange (SGX)

• CFD platforms (IG Markets, CMC Markets)

>> Read more: Gold perpetual futures

Ready to take the plunge and invest in physical gold? Here's a step-by-step guide to help you navigate the process:

1. Determine your budget: Before you start shopping for gold, decide how much you can comfortably allocate to this investment. Remember to factor in potential costs like premiums, storage fees, and insurance.

2. Choose a gold dealer or bank: You have several options for buying physical gold in Singapore. Banks like UOB offer gold bullion, while specialised bullion dealers like BullionStar and GoldSilver Central provide a wider selection of gold bars and coins.

3. Select the type of gold: Do you want gold bars, coins, or jewellery? Consider your investment goals and personal preferences. Gold bars and coins are typically preferred for investment purposes, while jewellery may have additional sentimental or aesthetic value.

4. Verify purity and authenticity: Ensure the gold you're buying is pure and authentic. Look for certifications from reputable organisations like the London Bullion Market Association (LBMA).

5. Decide on storage options: Secure storage is crucial for protecting your physical gold investment. Consider options like bank safe deposit boxes, home safes, or specialised vault services.

6. Make your purchase and track gold prices: Once you've done your research and chosen your preferred gold product and storage method, it's time to make your purchase. Keep an eye on gold prices to track the value of your investment and make informed decisions about buying or selling.

Gold can be a valuable addition to your investment portfolio, but it's important to understand its role and limitations. While gold can act as a hedge against inflation, it's generally not recommended as your sole investment.

One key consideration is liquidity. Physical gold can be harder to sell quickly compared to gold ETFs or stocks. If you need to access your investment quickly, physical gold might not be the best option.

Additionally, gold prices can fluctuate significantly due to various economic factors. While gold is often seen as a safe haven during uncertain times, it's not immune to market volatility.

Ultimately, deciding whether to buy gold in Singapore boils down to your investment goals, risk tolerance, and financial situation.

Here are some gold investment apps in Singapore to consider:

Gold has a reputation for stability, especially during times of economic uncertainty. But is it a good investment for your portfolio in Singapore? How can you buy gold and integrate it into your investment strategy?

One of gold's key strengths is its ability to retain purchasing power over time. Unlike currencies, which can be affected by inflation, gold tends to hold its value, making it a good hedge against rising prices.

However, when compared to stocks and bonds, gold's performance can be less impressive. While gold prices can rise, they generally don't offer the same growth potential as equities. Additionally, gold doesn't provide dividends or interest payments like many stocks and bonds do.

Despite this, gold can play a valuable role in portfolio diversification. Because its price movements are often not correlated with stocks and bonds, adding gold to your portfolio can help reduce overall investment risk. If the stock market crashes, gold might hold its value or even increase in price, helping to offset losses in other asset classes.

Gold can be a valuable tool for diversification, but it's important to allocate it appropriately within your portfolio. A common recommendation is to keep gold investments within 5-10% of your overall portfolio.

Combining gold with stocks and bonds can provide a balanced approach to risk management. Stocks offer growth potential, bonds provide stability, and gold acts as a hedge against inflation and economic downturns. For those with a higher risk tolerance, exploring alternative investments like cryptocurrencies can further diversify your portfolio.

Historically, gold has often outperformed equities during recessions and periods of economic uncertainty. This makes it a potential safe haven asset that can help protect your portfolio during market volatility.

>> Read more: Alternative investments to diversify your portfolio

Gold has a reputation as a safe haven asset, and for good reason. During times of financial uncertainty, gold often holds its value or even increases in price. This was evident during the 2008 financial crisis and the COVID-19 pandemic, when investors flocked to gold as a hedge against economic turmoil.

Why does this happen? When inflation rises or currencies weaken, investors often turn to gold as a store of value. Gold's limited supply and historical significance make it a reliable asset in times of crisis.

However, it's important to distinguish between physical gold and "paper" gold. Physical gold, such as gold bars or coins, is independent of the financial system. Even if banks or stock exchanges were to fail, your physical gold would still retain its intrinsic value. On the other hand, gold stocks, funds, and futures are tied to the financial system and could be affected by a major crisis.

Yes, but it's not as simple as buying stocks or ETFs. Trading gold futures requires a brokerage account, some trading experience, and a good understanding of the risks involved.

Gold futures are considered a high-risk investment product, mainly due to their leverage. Leverage allows you to control a large amount of gold with a relatively small investment, but it also amplifies potential losses. If the market moves against you, your losses could exceed your initial investment.

To trade gold futures, you'll typically need a margin account, which requires a minimum capital requirement. This varies depending on the brokerage and the specific contract you're trading.

Where to start? If you're interested in trading gold futures, consider using regulated CFD and futures platforms in Singapore, such as the Singapore Exchange (SGX) or reputable CFD brokers like IG Markets and CMC Markets.

UOB makes it easy for you to shop for different types of gold products online or in person.

The UOB Gold Savings Account lets you buy and sell gold conveniently with the option of converting your holdings into physical gold. Here are the steps to follow:

• Open your Gold Savings Account at a UOB branch 

• Buy gold conveniently through UOB Personal Internet Banking (click on ‘Investments’ then ‘Gold and Silver’) or UOB TMRW app (click on ‘Services’ then ‘Buy Gold/Silver’)

• Available from Mondays to Fridays, 8am to 11pm, excluding Singapore public holidays

Wondering how to buy gold bars and bullion coins in Singapore? Existing UOB Personal Internet Banking users can buy gold bars and gold bullion coins online at their convenience. Do collect the gold piece(s) in person at UOB Main Branch within five working days from 9.30am to 4.30 pm to avoid late collection charges.

You don’t need to have a UOB account to buy gold bars and gold bullion coins. You can purchase these gold items at the UOB Main Branch from 9.30am to 4.30 pm, Mondays to Fridays excluding public holidays.

You can purchase gold certificates at the Gold Counter of UOB Main Branch from 9.30am to 4.30 pm, Mondays to Fridays excluding public holidays.

In case you’re wondering, the gold certificates are sold in multiples of one kilobar of 999.9 fineness. Each gold certificate is subject to a maximum of 30 kilograms.

UOB lists its gold and silver prices in SGD on its website to make things easy for customers and investors. You can also access the gold and silver price chart via UOB Personal Internet Banking or UOB TMRW app anytime, anywhere.

While the gold and silver price chart is updated daily, take note that the gold and silver prices shown are subject to change without prior notice and may be different at the time of actual transaction.

Source: UOB

The UOB gold price chart is useful for when you want a quick glance at the prices to decide if you would like to trade. 

For instance, the minimum quantity per transaction with a Gold Savings Account is five grams of gold. UOB’s gold price chart gives you an indicative price at which the bank is buying or selling one gram of gold that day. 

If you’ve struck the lottery or gotten a fat bonus and are interested in getting some gold bars, UOB’s gold price chart shows you how much these gold bars may cost on that day — and there are plenty to choose from.

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